Using the percentage of sales technique, the remaining dollar amount of asset investments determines the external financing needs (EFN).

Name: Using the percentage of sales technique, the remaining dollar amount of asset investments determines the external financing needs (EFN).
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The percentage of sales technique calculates the amount of financing needed based on a percentage of projected sales. The remaining dollar amount of asset investments is not used in this calculation.

Using the Percentage of Sales Technique, the Remaining Dollar Amount